Saudi‚Äôs Clean Energy Juggling Act

Saudi Arabia‚Äôs clean energy sector has shown fledgling growth in recent years and its outlook remains positive as the government lays out plans to meet domestic demand and sustain crude oil exports.

Power demand in the country has proved to be a huge problem, primarily as a result of a fast-growing economy and population. Households account for 80 per cent of total electricity consumption, 70 per cent of which is for cooling. Given that crude is sold to domestic power stations at about $4.50 per barrel ‚Äì significantly below export parity when Brent is trading at about $120 per barrel ‚Äì this reduces efficiency and encourages waste.